Engineering firm’s move gives hope
FURTHER evidence emerged today of business confidence in the Tees Valley with news that a major engineering firm was moving to new premises and the latest phase of a key business park was being launched with the potential to create 1,000 jobs.
Cummins, which already has a manufacturing base in Darlington, is moving its two distribution, service and maintenance operations from Eaglescliffe to one site in Stockton. The site is owned by Yorkshire property investment company The Helmsley Group, which formed a property syndicate to purchase the industrial unit on Opus Park for £1.185m.
The newly refurbished 18,430sq ft building at Preston Farm Industrial Estate has been let for 10 years to Cummins.
The premises will provide the company with additional storage and service accommodation.
James Craven, director of The Helmsley Group, said: “In today’s very uncertain marketplace we are targeting properties that are let for a long period of time to very strong covenants to minimise the risks and maximise the certainty of quarterly rental returns.
“Our intention is to provide properties that are very likely to continue to perform in rental terms, regardless of the state of the marketplace and we believe Cummins’ covenant strength goes a long way to fulfilling that goal.”
Cummins UK said the Preston Farm site was a “high profile location” and provided “better and bigger premises” for the company.
Meanwhile, a new development at Darlington’s Lingfield Point business park could provide for up to 1,000 workers.
Meadow is the latest new addition to the site and will provide around 47,000sq ft of ground floor space with an additional 50,000sq ft expansion space also available.
The open-plan office accommodation has been developed on the ground floor of the restored Lingfield House - once the headquarters building of the Paton and Baldwin’s wool factory site.
Developers Marchday said recent successful lettings of adjacent units had allowed it to launch the new office space.
The number of people working at the business park is expected to rise to more than 2,500 in 2008 with further increases expected as ambitious plans for the future of the estate are put in motion. A planning application was recently submitted to complete the regeneration of the 107-acre site, which Marchday acquired 10 years ago. The aim is to create a sustainable mixed community, which will become a nationally-recognised flagship regeneration scheme.
Eddie Humphries, estate manager at Lingfield Point, said: “The success of our recent developments, including The Studios and Memphis, enabled us to create another large scale office building at Lingfield Point.”
The new Darlington Eastern Transport Corridor (DETC) has been the catalyst for the revival of Lingfield Point, creating a new entrance to the estate with direct access on to the A66 and beyond to the region’s commuter network.
Recent arrivals at Lingfield Point have included the Student Loans Company, which occupies similar office space to that being offered at Meadow, which has already been shortlisted for architectural awards.
David Jackson, director of agents Sanderson Weatherall, said: “There have already been a number of enquiries for Meadow and we are confident that it will not remain available for too long. “The combination of the area’s excellent and improving road, rail and air links with a modern business community is proving popular with businesses of every size.”
